Social Marketisation and Policy Influence of Third Sector Organisations: Evidence from the UK

Jun Han

doi:10.1007/s11266-017-9853-1

Abstract

The marketisation of social sector organisations or social marketisation emerged and spread around the world in the past three decades. In contrast with existing literature which claims that social marketisation makes social sector organisations reduce their efforts on advocacy and thus harms a civil society, this research argues that social marketisation is positively contributed to the influence of third sector organisations on government policies, and thus it strengthens civil society, rather than erodes it. Based on the National Survey of Charities and Social Enterprises in the UK, the results of regression analyses indicate clearly that, when other factors are equal, the two indicators of social marketisation, social entrepreneurship and achieving government contracts for purchasing services, are both statistically significant in estimating the level of policy influence of third sector organisations. The contribution of this research is that it finds a positive, instead of a negative, relationship between social marketisation and the perceived policy influence of third sector organisations.

Highlights

The past three decades have witnessed the marketisation of social sector organisations around the world
The data of National Survey of Charities and Social Enterprises (NSCSE) reveals that, on average, the satisfaction of third sector organisations on their policy influence is 2.8 (1–5 scale). 2.1% of third sector organisations in the UK were very satisfied with their ability to influence policy. 14.3% of third sector organisations are fairly satisfied with their ability to influence policy. 22.5% of third sector organisations neither satisfied nor dissatisfied
Regarding the two key indicators of social marketisation, the data shows that 44.7% of third sector organisations in the UK become social enterprises, as they devote half or more of their profits or surpluses generated in their commercial activities to pursue social goals. 28.1% of third sector organisations succeeded in bidding for contracts from local statutory bodies over the last 5 years

Summary

Introduction

The past three decades have witnessed the marketisation of social sector organisations around the world. A new phenomenon is emerging and growing, whereby an increasing number of third sector organisations are developing their own funding streams by selling products or services to customers, corporations, foundations, or the government This phenomenon is important, because it indicates that social organisations are devising their own solutions, in the form of professional services, to address social problems or meet social demands. As social problems and social demands emerge and develop, social organisations can design and undertake professional services, as their unique solutions, to address complex social issues As their service income grows and when they devote their half or more profits to addressing social issues, social organisations can address social problems in a more sustained and effective way. This research reports the results, draws the conclusion, and discusses the contribution and weakness of this research

Literature Review

Results

Conclusion